Optical Practice Values Showing Signs Of Recovery

RA Valuations Services suggest that Optical practice owners should spend more time 'working on the business rather than merely working in the business' over the next 12 months if they want to maintain or increase its value.
This advice is based on their findings on practice values over the last year:

• Overall, values for optical practices fell by 1% during 2012
• Values increased modestly for practices in the £100,000-£200,000 turnover sector due to an increase in demand
• Practices in the £200,000-£300,000 turnover bracket remained a popular purchase, being habitually more profitable
• The most activity was experienced with larger practices in the £500,000-£1m turnover range
• Many practices with a turnover of under £100,000 have either folded or been taken over by a larger business

As such, RA predicts that practices which operate as profit-orientated businesses will continue to do well over the next year; but those which struggle to compete with the more commercially-savvy may be forced to close. They say that exit strategy planning is also important, so that practices don't have to close when the owner retires.
To read more, visit http://www.optometry.co.uk/business/?article=4652
To find out about Flame Health Optometry's Practice Sale/Franchisee opportunities, or if you are wanting to sell a practice, click here.